Residents Worried After Bank Forecloses On Builder

BOSTON -- Residents of a Shirley development are out a lot of money after a bank foreclosed on a builder who promised work but never delivered.

NewsCenter 5's Janet Wu reported Monday that the homeowners are worried because they have little recourse.

Residents Worried After Bank Forecloses On Builder

Thirty homes -- each purchased for more than $400,000 -- still have unpaved driveways, unpaved roads, major drainage problems and unfinished work inside the houses.

"We still have cabinets that need work," resident Julie Carr said. "Nails are pushing through the ceiling."

One homeowner, reluctant to be identified, said he's been waiting two years now for work to be completed on this detention pond.

But now the bank is foreclosing and will put the subdivision up for sale at a public auction next week. The owner has defaulted on $6 million in payments.

"It's hard -- a constant issue for everyone who lives here, angst for everyone," Carr said.

Contractors, such as Jim Fenton, are owed $250,000. He said he's never seen a developer with so many problems.

"I've worked with hundreds of them, and this is the worse. This is the worse," Fenton said.

Steve Goodman, president of GFI, which owns the development, spoke to NewsCenter by telephone. He blames the turmoil in the housing market and unexpected engineering costs of more than $1 million for his problems. He said they "were trying to build a boat in the middle of an ocean."